Skepticism is growing that the inflation-hungry Bank of Japan can do any more to stimulate the economy now that Prime Minister Shinzo Abe has delayed the next consumption tax hike.
The BOJ could come under pressure as early as the first half to loosen monetary policy further unless wages show significant growth and inflation climbs steadily toward the BOJ's 2 percent goal, according to sources familiar with the bank's thinking.
The prospect of additional easing has been fueled by the recent fall in crude oil prices, which are putting deflationary pressure on consumer prices. The trend drove the central bank into a surprise decision last month to expand its radical monetary easing strategy even further.